Ohio Cas. Ins. Co. v. Chris Dials Contracting LLC

• Decision Date: 07 December 2022
• Docket Number: 3:19-cv-00447-AR
• Parties: OHIO CASUALTY INSURANCE COMPANY, a New Hampshire Corporation, Plaintiff, v. CHRIS DIALS CONTRACTING LLC, an Oregon limited liability company; CHRISTOPHER PAUL DIALS, an individual, Defendants.
• Court: U.S. District Court — District of Oregon

OHIO CASUALTY INSURANCE COMPANY, a New Hampshire Corporation, Plaintiff,
v.
CHRIS DIALS CONTRACTING LLC, an Oregon limited liability company; CHRISTOPHER PAUL DIALS, an individual, Defendants.

No. 3:19-cv-00447-AR

United States District Court, D. Oregon

December 7, 2022

FINDINGS AND RECOMMENDATION

JEFFREY ARMISTEAD, United States Magistrate Judge

Before the court is plaintiff Ohio Casualty Insurance Company's motion to lift the stay on this action and to enter judgment in accordance with the parties' settlement agreement and Confession of Judgment. Mot. to Enter Judgment, ECF No. 80. The court construes this motion as a request to enforce the parties' settlement agreement. Ohio Casualty has also submitted a Bill

1

of Costs. ECF No. 85. Because it is undisputed that the parties entered a settlement agreement and because Ohio Casualty has presented evidence that defendants breached that agreement, Ohio Casualty's motion for entry of judgment should be granted. The court also recommends granting Ohio Casualty's Bill of Costs.

BACKGROUND

On March 27, 2019, Ohio Casualty filed this diversity action against defendants Christopher Dials and Chris Dials Contracting LLC (CDC), alleging several causes of action to recover costs associated with surety bonds that Ohio Casualty had issued on behalf of CDC. See generally, Compl., ECF No. 1; Am. Compl., ECF No. 4 (filed April 10, 2019). After several months of negotiations, the parties entered into a settlement agreement on August 23, 2021. Decl. of Jason Stonefeld ¶ 2, Ex. A, ECF No. 82.^[1] The agreement is governed by Oregon law, and both parties were represented by counsel during the settlement process.^[2] Id. at 5; see also Order Appointing Heather J. Van Meter for Christopher Paul Dials and Chris Dials Contracting, ECF No. 44 (dated November 30, 2020); Notice of Appearance, ECF No. 51.

As part of the settlement, defendants agreed to pay Ohio Casualty a total sum of $125,000 within one year, with the first monthly installment of $5,000 due on September 1, 2021.

2

Id. The parties also executed, notarized, and filed with the court a Confession of Judgment memorializing that obligation and providing:

If full payment is not made in accordance with the Settlement Agreement, [Defendants] agree that [Ohio Casualty] is entitled to recover the remaining balance owed of the original $125,000.00, plus reasonable attorney fees necessarily incurred in the above-captioned case and for enforcing this Confession of Judgment, as well as recoverable costs in the above-captioned case and recoverable costs for enforcing this Confession of Judgment, and interest at the rate of 9% per annum as specified above until the full sum owed under this Confession of Judgment is paid in full

[. . .]

[Ohio Casualty] may execute upon this Confession of Judgment by filing a Declaration showing the [Defendants'] default and demonstrating any amounts owed under the terms of the Confession of Judgment

Confession of Judgment, ECF No. 76. The settlement agreement likewise authorizes Ohio Casualty to “seek past and future attorneys' fees, costs, and disbursements in enforcing and/or otherwise executing the Confession of Judgment.” Stonefeld Decl. ¶ 2, Ex. A at 4.

Ohio Casualty agreed not to enforce the Confession of Judgment if defendants complied with the terms of the settlement agreement, and this action was stayed until September 13, 2022, to allow defendants time to satisfy their obligations. Order, ECF No. 77. Defendants made monthly installment payments of $5,000 to Ohio Casualty totaling $25,000. Stonefeld Decl. ¶ 3. The last payment was received on December 10, 2021. Id. ¶ 4. On August 23, 2022, the final payment deadline passed, with $100,000 remaining due to Ohio Casualty. Id.

On September 7, 2022, Ohio Casualty sent defendants' counsel a request that defendants stipulate to a motion seeking a relief from stay and to enter judgment. Dec. of Meredith Dishaw ¶ 2, ECF No. 81. In response, Ohio Casualty received a proposal for an altered settlement agreement, but no further response regarding the requested...